If I was a GM, this is what I'd do about all this:
Remove Keron Affinity Scrolls and the Affinity gained from those abusing Keron Scrolls.
2 week Siege ban for all those individuals who broke the rules
Rename the Master Stone NPC, as this is not the first time that the person who named it has been shown to be breaking the rules. (and that's just public reports, who knows about RT's?)
I'm not in favour of a total Guild ban, as I'm sure there were some people who joined one Guild or the other with the intention of playing fair, and I don't feel it's right that those people should be punished just for the actions of a select few.
P.S: Slugzynoob, did you manage to catch any SS's of Keron use? If you find SS'ing too slow, you could always jot down the time down to the minute when you have these Scrolls used on you, probably would help with log searches if they have specific times.